This Cannabis ETF Is Gaining Strong Momentum — And Trump's Policy Shift Is The Big Reason Why

Core Insights - The Roundhill Cannabis ETF (BATS:WEED) has experienced a significant increase in technical strength, with its momentum ranking reaching the 89th percentile this week due to renewed optimism for federal cannabis reform [1][2]. Momentum Analysis - The Roundhill ETF's momentum score is reported at 89.25, significantly outperforming industry peers like Aurora Cannabis Inc. (NASDAQ:ACB), which has a momentum score of 21.25 [2]. - This momentum metric is crucial for traders as it reflects the ETF's relative strength based on price movement patterns and volatility over various timeframes, indicating strong investor confidence [3]. Long-Term Outlook - Despite the short-term surge in momentum, the technical outlook is mixed; while the ETF shows positive trends in the short and long term, the medium-term trend remains negative according to Benzinga Edge's Stock Rankings [4]. Regulatory Impact - The primary catalyst for this momentum is the evolving regulatory environment, particularly President Trump's initiative to reschedule cannabis to Schedule 3, which is considered a significant policy shift in 50 years [6]. - Rescheduling to Schedule 3 would alleviate the tax burdens imposed by Section 280E, enhancing the profitability of U.S. cannabis operators [7]. Performance Metrics - The WEED ETF has seen a decline of 4.72% in 2026 thus far, but it has increased by 61.50% over the last six months and 26.17% over the past year [8].